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Originally Posted by jehane
Erm, a smartphone is about the phone functionality, not about screen size. In fact a lot of smartphones have qwerty keyboards. So it's entirely possible to have a smartphone with a relatively small screen and lots of tiny buttons. It's also possible to have a non-smartphone with a large screen.
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yes, sorry for the confusion: should have said "touchscreen" or "sliding keyboard" smartphone. The idea being that for reading you have all the front area of the physical device, not just half of it, the other half cluttered with tiny buttons.
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3.7" is at the larger end of the range for phone screen size. Even so, it would be too small for me, and I read from a 5" device. I read a lot, and for me a dedicated device is worth it. I have been reading ebooks for years, on computers, PDA and yes, I've tried my phone. I much prefer my Sony.
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I'd certainly prefer it too, though I'd go for a more significant leap from 3.7", like 7" or 10". But it's not enough to overcome the pragmatism, flexibility and portability a smartphone affords me.

ie, I'm posting from it from my bed...
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Likewise, I still have a couple of dedicated cameras. Yes, more than one camera, and no, I'm not even close to being a professional photographer. But they are sufficiently different that I use them in different circumstances. OTOH, while I like listening to music, I'm not an audiophile, so I'm content to use my phone as mp3 player.
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Btw, there's precisely 0 difference between an iPod and an iPhone as far as audio quality goes -- it's pretty much the same hardware running the same audio codecs. The iPod today is just a stripped down and affordable iPhone.
I've seen people touting dedicated mp3 players so that they can keep their phone batteries longer for calling. My 2 cents: 1) what drains away batteries in phones is 3g connection mostly and both e-reading and music can keep it going all day long; 2) are people living in the jungle with no power outlets for recharge? Ok, make it 3) do people never sleep anymore so they can't recharge daily? (no, it doesn't harm newer batteries anymore)
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In the end, it depends what's important to you. Many of us here are heavy readers, so it's not surprising that we like dedicated devices.
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I'm a heavy reader too, if the Robinson Crusoe reference didn't make it clear enough. But, like you said, it's all about what is important to us, and portability and flexibility win me over large screens and single-function devices...